The crypto market took just 3 months to rise another trillion
Cryptocurrencies have risen in a big way eclipsed the $1 trillion market cap in a decade. But the $2 trillion mark came much, much sooner.
The crypto market has seen boisterous growth in the past year, rising from an under $500 billion market in early 2020 to over a $1 trillion giant in early 2021.
And while the first trillion dollars took over 10 years to reach, the next trillion came in just three months. “It took the crypto market 10 years to reach $1 trillion and then roughly 90 days to reach $2 trillion,” noted crypto data and news site Bloqport in a tweet.
It took the crypto market 10 years to reach $1 trillion and then roughly 90 days to reach $2 trillion
— Bloqport (@Bloqport) April 5, 2021
Part of the $1 trillion surge came from the smart contract space, the decentralized finance (DeFi) sector, and the burgeoning non-fungible token (NFT) space.
Dissecting the rise
Smart contracts dominate 21.24% of the cryptocurrency market with a $413 billion valuation, with all coins in the sector seeing a 14.50% surge (on average) in the past 14 days.
Ethereum, the world’s most-used blockchain, leads that space with a $243 billion valuation, while Cardano takes second place with a $40 billion valuation.
DeFi is a $100 billion sector that dominates 4.97% of the entire crypto market led by the likes of decentralized exchange Uniswap ($16.26 billion marketcap) and oracle provider Chainlink ($13.69 billion marketcap). Wrapped Bitcoin, an ERC20 version of BTC, takes third place with an $8 billion market cap.
NFTs remain small in the grand scheme of things but contributed to the rise nonetheless. The $25 billion sector has seen a big push in the past few months, with celebrities, movie stars, and sports giants jumping in on the digital art/collectible action.
Bitcoin still leads the market with a 55% dominance. The world’s largest cryptocurrency by market cap is valued at over $1.09 trillion, or a tenth of that of gold.
#Bitcoin HODLers are growing, quickly. pic.twitter.com/71NMaQaZU7
— Documenting Bitcoin ? (@DocumentingBTC) April 6, 2021
Meanwhile, with the surge to a $2 trillion valuation, the market value of all cryptocurrencies is now equal to that of US banking equities.
“The total value of all cryptos surpassed the value of the US banking system. Why is this measure relevant? It is an admittedly imperfect attempt to measure the size of the current CeFi system versus the coming DeFi system,” noted Jim Bianco, president of Bianco Research on Twitter.
“Another double and cryptos become larger than US Financial Companies (Banks + brokers, insurance, exch, fin cos, asset managers, etc).”
A sort of milestone was reached today.
The total value of all cryptos surpassed the value of the US banking system.
Why is this measure relevant? It is an admittedly imperfect attempt to measure the size of the current CeFi system versus the coming DeFi system.
— Jim Bianco (@biancoresearch) April 6, 2021
Wonder what gold bugs will say of the valuation then.